FX.co ★ Japan 10-Year Yield Steady as BOJ Outlook Weighed

Japan’s 10-year government bond yield remained around 1.65% on Friday, lingering near its highest in 17 years as investors evaluated the Bank of Japan's potential policy directions. Recent data indicated that Tokyo’s core inflation increased by 2.5% in September, consistent with August's figure but below the anticipated 2.8%. Minutes from the BOJ’s July meeting revealed a disposition among policymakers to further increase rates, contingent on favorable economic and price developments. Despite maintaining current rates during its September meeting, the BOJ encountered two dissenting votes, hinting at possible tightening measures in the near future. On the political front, the ruling Liberal Democratic Party is set to choose a new leader on October 4 to replace the outgoing Prime Minister Shigeru Ishiba.